Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello I need to know how can I do this 2 questions on the financial calculator provide explanation in financial calculator steps thanks It a

Hello I need to know how can I do this 2 questions on the financial calculator provide explanation in financial calculator steps thanks image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
It a bonds ylekd to maturity does not change, the retuen on the bend each year will be equal to the yeld to maturity Confim this for both a premium and a discount bond using a 4 year 4.8 percent coupon bond with annabl coupon poyments and a face value of 51,000 a. Acsume the yleid to moturity is 3.8 percent b. Actume the yieid to maturity is 5. . percent. Complete this question by entering your answers in the tabs below. places and "llate of return" rivoded to I decimal plsce.) If o bend s yyedd to maturity does not change, the retwen on the bond each year wil be equal to the yield to maturity Confiem his for both a premium and a diaceunt bond using a 4 year t is percent coupon bend war arnuat coupon peyments and a face yaue of $1,000 a. Assume the yield to matuity is 3.8 percert. b. Assume the yleld to meturiy is 5 is pertent. Cemplete this queutios by entering yoer answers in the tatis bedew. places and "Rate of teturn" roundes to t deomal pace) Consider a band with a face value of $1,000, an annuai coupon rate of 6 percent, a yold to maturity of 8 percent, and 10 years to moturity This bonds durition is Mukpin choice ex vear. 7 syears 10.0 yeare 6.5 yeert 76 years. 700 years: 6.5 years Explanation Step IN=10;PMT=60;FV=1,000,1=B, compuie PPV=865.80. Step 2: Duration =(x55.56)+2(51.44)+3(47.63)+4(44.10)+5(40.83)+6(37.81)+7(35)+8(32.42)+9(30.07+10(490.991/1865.80j=76 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Day Trading Strategies And Risk Management

Authors: Richard N. Williams

1st Edition

979-8863610528

More Books

Students also viewed these Finance questions

Question

Advantages on Tracking People

Answered: 1 week ago